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What is Section 8 Company
A Section 8 company is a type of not-for-profit organization in India that is formed with the primary objective of promoting arts, commerce, science, research, sports, education, social welfare, religion, charity, or any other useful objective.
It is registered under Section 8 of the Companies Act, 2013, and is unique because it does not aim to generate profit. Any profits made are utilized towards promoting the objectives of the company, without any distribution of dividends to its members.
Advantages of a Section 8 Company
Registering a Section 8 company comes with several benefits, including:
- Tax Benefits: Section 8 companies enjoy various tax exemptions under the Income Tax Act, encouraging donations and funding for non-profit activities.
- Credibility: The legal framework provides a high level of trustworthiness to donors, partners, and stakeholders.
- Limited Liability: Members’ liability is limited to the amount they contribute, reducing personal risk.
- No Minimum Capital Requirement: There is no minimum capital requirement for setting up a Section 8 company, making it easier to start.
- Exemptions from Stamp Duty: Section 8 companies are exempt from stamp duty on certain legal documents.
Range of Services for a Section 8 Company
- Section 8 Company Registration
- Comprehensive guidance regarding the registration process, which includes drafting the Memorandum of Association (MOA) and Articles of Association (AOA).
- Support in acquiring the Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the individuals designated as directors.
- Submitting the name approval application and obtaining the essential consents from the Ministry of Corporate Affairs (MCA).
- Compliance and Legal Advisory
- Assuring adherence to all legal compliance mandates, including annual submissions, Income Tax Act compliance, and Goods and Services Tax (GST) registrations, when applicable.
- Guidance in securing various approvals and licenses required for operating a Section 8 company.
- Consultancy offered to ensure compliance with FCRA (Foreign Contribution Regulation Act) regulations for receiving foreign donations.
- Accounting and Financial Services
- Comprehensive accounting solutions, encompassing bookkeeping, financial reporting, and audit assistance.
- Assistance in applying for tax exemptions under Sections 12A and 80G of the Income Tax Act.
- Financial planning and budgeting advisory aimed at effective fund utilization to meet the organization’s social objectives.
- Fundraising and Donor Management
- Expert guidance on fundraising from diverse sources, encompassing corporate sponsorships, crowdfunding, and grant proposals.
- Donor management services designed to cultivate enduring relationships with contributors and partners.
- Support in designing impactful fundraising campaigns that resonate with prospective donors.
- NGO Branding and Digital Marketing
- Creation of a robust brand identity that aligns with the organization’s mission and values.
- Digital marketing services including website development, social media management, and search engine optimization (SEO) to enhance digital visibility.
- Content development for awareness campaigns, newsletters, and event promotions.
Steps to Register a Section 8 Company
To register a Section 8 company, follow these steps:
- Obtain DSC and DIN: The first step involves obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed directors.
- Name Approval: Apply for the company’s name approval with the Registrar of Companies (RoC).
- MOA and AOA Drafting: Draft the Memorandum and Articles of Association, outlining the company’s objectives and rules.
- Filing the Incorporation Form: Submit the required forms along with supporting documents to the Ministry of Corporate Affairs.
- Certificate of Incorporation: Once approved, you’ll receive a Certificate of Incorporation and can commence operations as a Section 8 company.
Why Partner with Us for Your Section 8 Company Requirements?
- All-Encompassing Support: From registration to ongoing compliance, we provide comprehensive support at all stages of operating a Section 8 company.
- Seasoned Professionals: Our team consists of legal and financial specialists with significant expertise in the non-profit sector.
- Customized Solutions: Recognizing that every organization is distinct, we tailor our services to meet your specific needs and objectives.
- Client-Centric Approach: Your vision for social impact is integral to our services. We collaborate closely with you to facilitate the effective achievement of your goals.
Get in Touch
Should you wish to establish a Section 8 company or require assistance with any related services, we are here to support you. Contact us today to consult with our experts and take the initial step toward fostering a meaningful social impact.
